Ofgem wants suppliers to “move early” on getting disengaged energy customers to be more active in the market, saying it will “not be easy or quick” to get customers who rarely look at their bills to engage.
The regulator promised to carry out trials to see what types of customer engagement were most effective, including randomised testing of ‘prompts’ to switch.
Ofgem Chief Executive, Dermot Nolan said: “The CMA’s final report is a watershed moment for industry and consumers and points the way to a fairer and more competitive future. I call on energy companies and consumer groups to seize this opportunity.”
The regulator said the Competition and Market Authority’s (CMA’s) database of disengaged customers, which will provide marketing opportunities for competing companies, will go live in spring 2018 and the regulator will work with consumer bodies to design and fine tune the database.
The actions were promised in Ofgem’s ‘implementation plan’ for the CMA remedies today.
Alongside the action plan Ofgem published a consultation on lifting restrictions that were imposed in “Retail Market Reform”.
Alex Neill, Which? Director of Policy and Campaigns, said: “After two years of investigation into the energy market it’s now time for action, so it’s good to see Ofgem swiftly taking forward the CMAs recommendations to increase competition and reach people who are not engaged in the market.
“The regulator faces a huge challenge in implementing all of these recommendations in a way that stimulates competition to deliver better outcomes for many more consumers. For this to happen the industry will need to commit to working with the regulator to ensure people get a fairer deal on their energy.”
Further reading:
New suppliers, same energy market? New Power spoke to Jo Gilbert of Robin Hood Energy, and Ramsay Dunning of Co-operative Energy – two contrasting companies hoping to make their mark in the UK energy retail market. What do they have to offer and will remedies from the Competition and Markets Authority help them grow?
Former regulators challenge CMA
Ofgem’s implementation strategy
Subscribe to New Power for full analysis, comment, interviews and data in our monthly report, and access to our database, or sign up to our FREE e-newsletter for website updates
Not a subscriber? To see if you qualify for our next FREE TRIAL send your name, job title, and telephone number to [email protected]